(Washington, D.C. -- April 21, 2008) Holly Refining & Marketing has agreed to spend more than $17 million in new and upgraded pollution controls at its refinery in Woods Cross, Utah, and pay a $120,000 civil penalty, the Justice Department and U.S. Environmental Protection Agency announced today. The settlement, which resolves alleged violations of the Clean Air Act by Holly, is expected to reduce air pollution by more than 420 tons of harmful emissions annually.

“Holly Refining is making a substantial investment in cleaner air for those who reside in and visit communities along the Wasatch Front,” said Carol Rushin, EPA’s Deputy Regional Administrator in Denver. “Today’s announcement reinforces that compliance with our nation’s clean air laws produces tangible environmental results.”

The Holly refinery has the capacity to refine nearly 24,700 barrels of oil per day and produces gasoline, diesel, and jet fuel. The agreement requires new pollution controls to be installed that will reduce annual emissions of sulfur dioxide by approximately 315 tons per year and nitrogen oxides by more than 105 tons per year when fully implemented. The new controls also will result in additional reductions of volatile organic compounds and particulate matter from each of the refineries. Volatile organic compounds and sulfur dioxide can contribute to respiratory disorders such as asthma and reduced lung capacity. They can also cause damage to ecosystems and reduce visibility.

In addition, Holly will spend $130,000 on a supplemental environmental project, to help fund the purchase of new emergency response equipment for the South Davis Metro Fire Agency, which provides emergency services in south Davis County, Utah.

“This settlement demonstrates our continuing commitment to reduce air pollution throughout the refining industry, and to provide cleaner air for the citizens of the Salt Lake City area,” said Ronald J. Tenpas, Assistant Attorney General for the Justice Department's Environment and Natural Resources Division

The agreement with Holly is the twenty-second in a series of comprehensive, company-wide settlements under an EPA initiative to reduce air pollution from refineries nationwide. With today’s agreement, 96 refineries located in 28 states, representing approximately 87 percent of the nation’s refining capacity, are required to install new controls to significantly reduce emissions. The first of EPA’s comprehensive refinery settlements was reached in 2000. More on the refinery initiative, visit: http://www.epa.gov/compliance/resources/cases/civil/caa/oil/index.html

he state of Utah has also joined in today's consent decree and will share a portion of the civil penalty with EPA.

The consent decree, lodged in the U.S. District Court for the District of Utah, is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree is available on the Justice Department Web site at http://www.usdoj.gov/enrd/Consent_Decrees.html.